Decentralization revolutionizes the creator’s economy, but what will it bring?

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From video game fans who make money on their passion as a lively channel to fashion influencers who stream their careers live on e-commerce platforms, the creative economy has flourished, grown and improved over the past year. Influenced by the ongoing COVID-19 pandemic, modern innovators have taken advantage of a gradual shift in consumer behavior as more people around the world go online. The creative economy, now valued at over $ 100 billion, is experiencing incredible growth as the worlds of e-commerce, social media and online communities merge.

With the emergence of social icons and related virtual stadiums like Metaverse, the coming year seems to be filled with great promises. What awaits creators in an increasingly digital and decentralized 2022?

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Social networks, from OnlyFans to TikTok, can give creators access to communities, but it is these creators who drive traffic to these platforms through the power of their content. Whether they are an artist, musician, author, photographer or influencer, they are the real money maker on these platforms. However, the relationship between the creator and their community is ultimately mediated by a third party – the platform – who can influence how fully the creator is rewarded and compensated for his work. This sometimes shows up as a reduction in revenue and can even affect the type of content that is created and the content.

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Imagine if you could be creative without limits. This is the benefit that social icons can provide. Blockchain-based fantokens can serve many purposes: for example, they can be used to reward fans for their participation by encouraging them to interact with the content world. Not only does this community help grow, but social tokens can also be used as an exchange medium – fans can directly compensate creators for work they love by managing a microeconomics that effectively separates the medium from the equation. By essentially turning themselves into a token, creators invite fans to participate in everything they do – think of the example of 23-year-old entrepreneur Alex Massage, who launched ALEX to raise enough money to travel to San Francisco for to start its startup.

Social brands are essentially the soul of Web3, they connect content creators and consumers directly and allow them to take advantage of the exchange of value. However, there are philosophical questions that deserve some reflection. What does it mean to symbolize oneself? Are you at risk of upscaling and pressure? After all, there have been documented cases of influencers on social media struggling to meet the demands of their followers. But as the creative economy continues to evolve, social tokens still represent an important step forward in leveling the playing field for what is fast becoming a legitimate career.

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Non-fungible tokens (NFTs), like social tokens, are another innovation that shapes the creative economy. Keep in mind that the NFT-based art market for cryptocurrencies is currently worth over $ 2.3 billion (as of mid-February 2022), indicating the lucrative opportunity artists have to access new streams of revenue generation from their work.

Meanwhile, NFTs can also be used to develop a new tab engagement model where they customize virtual assets with real-time experiences. Enter the fygital experience – a combination of physical and digital. NFTs can be linked to real franchises – if you’re a musician, it can mean keeping concert tickets for life or meeting VIPs and cheers, and as an artist, a certain number of imprints in a band – all provided the fans ownership of assets can verified, showing ownership and authenticity. As the economy gradually recovers and we continue to see a possible normalization of social activity, experimental NFTs as a tool for long-term engagement with fans are likely to gain popularity.

However, let’s not stop there: enter interactive NFTs. These resources may change over time based on fan changes of the content. Think of a digital deck, such as a player card issued by an athlete: a fan can request that an item be digitally signed, and effectively add and change NFTs to increase rarity.

Source: CoinTelegraph

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